会计KimmelFinancial6ePowerPointCh02.ppt

Copyright ? 2011 John Wiley Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that permitted in Section 117 of the 1976 United States Copyright Act without the express written permission of the copyright owner is unlawful. Request for further information should be addressed to the Permissions Department, John Wiley Sons, Inc. The purchaser may make back-up copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages, caused by the use of these programs or from the use of the information contained herein. Copyright Using the Financial Statements Liquidity ratios measure the short-term ability to pay maturing obligations and to meet unexpected needs for cash. Illustration 2-15 Liquidity Ratio For every dollar of current liabilities, Best Buy has $.97 of current assets SO 4 Identify and compute ratios for analyzing a company’s liquidity and solvency using a balance sheet. Using a Classified Balance Sheet SO 4 Identify and compute ratios for analyzing a company’s liquidity and solvency using a balance sheet. Solvency—the ability to pay interest as it comes due and to repay the balance of a debt due at its maturity. Solvency ratios measure the ability of the company to survive over a long period of time. Using the Financial Statements Using the Financial Statements Debt to total assets ratio measures the percentage of total financing provided by creditors rather than stockholders. Illustration 2-16 Solvency Ratio The 2009 ratio means that every dollar of assets was financed by 71 cents of debt. SO 4 Identify and compute ratios for analyzing a company’s liquidity and solvency using a balance sheet. Using the Financial Statements SO 4 Review Question The following ratios are available for Leer Inc. and Stable Inc. Compared to Stable Inc., Leer Inc. has: higher liquidity, higher solvency, and higher profitability. lower liquidity, higher solvency, and